Aldo Musacchio

Professor of International Business (and Economics), Brandeis International Business School

Research Associate, National Bureau of Economic Research (NBER)

Brandeis page | @MusacchioAldo | LinkedIn | @NBER@Amazon Author

aldom [at] brandeis [dot] edu

Co-editor of Financial History Review@FHRjournal


My bio according to ChatGPT:

Professor Aldo Musacchio is a prominent scholar in the field of business and economic history, with a particular focus on Brazil and Latin America. His research interests include state-owned enterprises, business-state relations, and economic development. He is also interested in exploring the role of institutions and governance in shaping economic outcomes.

One of Professor Musacchio's key contributions to the field is his work on state-owned enterprises (SOEs). He has conducted extensive research on the history, development, and impact of SOEs in Brazil and Latin America. His research has shed light on the factors that contribute to the success or failure of SOEs and the role that they play in economic development.

One of Professor Musacchio's most important findings is that SOEs can have a positive impact on economic development when they are managed and monitored effectively. In particular, he has found that SOEs can be effective tools for promoting industrialization and technological development in countries where there are significant institutional voids. 

Off the Books : Understanding and Mitigating the Fiscal Risks of Infrastructure

[FREE ACCESS] Washington, DC : World Bank, 2023


Herrera Dappe, Matías

Foster, Vivien

Musacchio, Aldo

Ter-Minassian, Teresa

Turkgulu, Burak


Off the Books: Understanding and Mitigating the Fiscal Risks of Infrastructure shows that however governments deliver infrastructure—through direct public provision, state-owned enterprises (SOEs), or public-private partnerships (PPPs), the risk of fiscal surprises is high in both good times and bad. As a result, infrastructure service delivery often ends up costing significantly more than expected, eroding limited fiscal space for productive spending. This book makes a unique contribution by quantifying the magnitude and prevalence of fiscal risks from electricity and transport infrastructure and identifying their root causes across a range of low- and middle-income countries. Drawing on important new sources of evidence and compiling many others, the analysis sheds light on how much is at stake in the good governance of infrastructure sectors. It allows policy makers to weigh the magnitudes of different types of risks and examine how they vary across contexts. Off the Books shows how a deeper understanding of the fiscal risks of infrastructure can help policy makers target reforms to areas where they can be expected to have the greatest impact. It lays out a reform agenda for mitigating the fiscal risks associated with infrastructure based on building government capacity; adopting integrated public investment management and integrated fiscal risk management; improving fiscal and corporate governance of SOEs; and ensuring robust PPP preparation, procurement, and contract management. The book will be of enormous value to policy makers, practitioners, and academics who have an interest in infrastructure and fiscal policy. 

Smoldering Embers: Do State-Owned Enterprises Threaten Fiscal Stability in the Caribbean? 

Inter-American Development Bank (2022)

(Reyes-Tagle, Gerardo; Musacchio, Aldo; Hosein, Roger; Wagner, Rodrigo; Pan, Carolina; Yu, Fernando; Park, Yery; Gookool, Rebeca; Escobar, Bernardita; La Cruz, Tamira; Araya, Sergio; Figueroa, Camila; Rosso, Lucas )

FREE ACCESS

Summary by ChatGPT

The book titled "Smoldering Embers: Do State-Owned Enterprises Threaten Fiscal Stability in the Caribbean?" published by the Inter-American Development Bank (IDB) analyzes the role of state-owned enterprises (SOEs) in the Caribbean and their impact on fiscal stability. The book highlights the importance of SOEs in the Caribbean as they play a significant role in providing critical services such as transportation, energy, and telecommunications. However, the book argues that SOEs can also pose a threat to fiscal stability due to their high debt levels, inefficiencies, and lack of transparency.

The authors analyze the performance of SOEs in several Caribbean countries and identify the main factors that contribute to their financial and operational challenges. These factors include weak governance, inadequate regulation, and political interference. The book also examines the impact of SOEs on the wider economy, including their effect on public finances, investment, and economic growth.

The authors conclude that while SOEs can contribute to economic development and provide important services, they need to be subject to effective governance and accountability mechanisms in order to ensure fiscal stability. They recommend a range of policy measures to address these issues, including improved regulation, better transparency and disclosure, and the introduction of performance-based budgeting. The book provides a valuable resource for policymakers and analysts interested in the challenges of SOEs in the Caribbean and their impact on fiscal stability.

Inter-American Development Bank (2019)

(with Emilio I. Pineda, eds.)

Short summary of the book here


 Harvard University Press, April 2014 (w. Sergio G. Lazzarini)

Follow us on Twitter @StateCapitalism and Facebook 

Review in the Schumpeter column (The Economist)

Read the introduction of the book here

Do you want to teach about this topic using HBS cases, this note explains what cases to use and how.



Here is the summary of the book according to ChatGPT


"Reinventing State Capitalism" explores the evolution of state capitalism in the 21st century. The book focuses on the experiences of state-owned enterprises (SOEs) in emerging markets, specifically in China, Brazil, and Russia. Musacchio and Lazzarini argue that state capitalism has undergone a transformation in recent years, moving away from the traditional model of state control over industry and towards a more market-oriented approach.

The book uses case studies of SOEs in the energy, telecommunications, and transportation sectors to illustrate his points. He notes that these enterprises have become more competitive, efficient, and profitable under the new model of state capitalism. However, he also acknowledges that there are challenges to this approach, including the risk of corruption, the potential for political interference, and the need for regulatory frameworks that balance state ownership with market principles.

Throughout the book, the authors provide a nuanced analysis of state capitalism, drawing on a wide range of academic research and empirical evidence. He argues that state capitalism is not a monolithic concept, but rather a diverse set of practices that vary depending on the political and economic context. Musacchio and Lazzarini's  book is an important contribution to the study of state capitalism, offering insights into how this economic model is evolving and what the implications are for emerging markets and the global economy.

in Spanish (Los Buenos Tiempos son Estos), Centro de Estudios Espinosa Yglesias, 2014. (with Stephen Haber)

*Winner of the Best Book Prize of the Centro de Estudios Espinoza Yglesias 2014

The English version is published as an NBER working paper HERE

(With Eric Werker) Harvard Business Review, December 2016 

In this paper we provide a simple framework to aid in the design of successful entry and survival strategies in frontier markets. 

Follow us @frontierecon4 and in our web page


(with Sharon Poczter and Sergio G. Lazzarini) Sloan Management Review, May 30, 2018